CONTRACTORS AND
THE OCCUPATIONAL LICENSE TAX
For occupational license tax purposes, the term
“contractor” is synonymous with the term “builder.” A contractor is a person,
firm, partnership, corporation, association, or other organization, or a
combination of them, which undertakes to or offers to undertake to, or purports
to have the capacity to undertake to, or submits a bid to, or does himself or by
or through others, construct, alter, repair, add to, subtract from, improve,
move, wreck, or demolish any building, highway, road, railroad, excavation, or
other structure, project, development or improvement, or to do any part thereof,
including the erection of scaffolding or other structure and includes
subcontractors and specialty contractors. As such, the word “contractor” shall
include oil field service contractors, which shall consist of those contractors
performing general oil well service, maintenance, and construction when
conducted as a single company unit. General oil well servicing shall include
welding, pipe coating, pipe inspection, wireline service, automation, work over,
logging, analysis, seismograph, installing and servicing equipment, packing,
platform work, perforation, and completion.
For the purpose of computing the license fee, a contractor’s gross receipts are
determined the same for all contractors, whether or not they have a lump sum
contract or a cost plus contract. The gross receipts for a lump sum contract are
based on the actual amount of the contract, whereas, the gross receipts for a
cost plus contract are based on the actual cost of the contract to owner,
including the amount added thereto as a fee.
OUT-OF-PARISH CONTRACTORS
If a contractor is domiciled and registered in
another parish, an occupational license for East Baton Rouge is not required.
According to Section 27(A) of our local Occupational License Tax Ordinance, “No
municipality or parish shall levy a license tax upon any person engaged in the
business of contractor, as defined in this ordinance, either upon a cost plus
basis or upon other than a cost plus basis, except the governing authority of
the municipality or parish in which is located the principal place of business
of such contractor within the state as designated by the contractor.”
OUT-OF-STATE CONTRACTORS
The cost of the occupational license tax for an out-of-state contractor with no
location within this State is based on the amount of the contract awarded in
this Parish. If the contractor has paid a license in another jurisdiction in
Louisiana during the same year, a credit shall be given in calculating the total
amount of license tax due this parish. In no case will the total amount charged
to any contractor exceed $750.
SPECIAL PROVISION FOR CONTRACTORS
The maximum license tax paid by contractors
licensed as required by Subsection 27 of Ordinance # 9537 shall not exceed $750.
Contractors will use the rate table as identified in Section 16 titled
"WHOLESALE DEALERS IN MERCHANDISE, SERVICE AND RENTALS; RETAIL DEALERS TO
INSTITUTIONAL CONSUMERS; SHIPBUILDERS; AND CONTRACTORS."
Remember to mail your return
early! Returns bearing a U.S. postmark on or after the above delinquent
dates will be assessed penalty, interest, and loss of vendor's compensation.
